New Lincolnshire County Council planning bid for Lincoln Eastern Bypass
A further planning application has now been submitted for the Lincoln Eastern Bypass.
Chancellor George Osborne has agreed funding support of £50m towards the estimated £96m scheme for a single carriageway road.
Councillor William Webb, Executive Councillor for Highways and Transportation, said: "This marks another significant step forward towards building a new eastern bypass around the city.
"As the funding was specifically for a single carriageway road, we need to submit a new planning application – however, a dual carriageway road remains our longer term aspiration."
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Lincolnshire County Council is making a contribution of £14m, and is acting as 'guarantor' to underwrite the £33m third party funded element.
This will be recouped from developers in due course and means construction could start far sooner.
The planning application has been submitted to the county council's planning department and has a target date of 16 weeks for determination.
A decision is expected at the planning and regulation committee in the spring. The road will take around two years to build and construction could start in 2014.
Councillor Webb added: "This is one of a number of key schemes taking place around the county, seeking to improve the roads and help keep people moving safely.
"Plans for relief roads in Grantham and Spalding are also progressing well."